Rockland Trust Will Acquire Edgartown National Bank

The Edgartown National Bank, the Island’s second oldest bank whose charter dates to 1905, will be acquired by the Rockland Trust Company.

The announcement was made in a joint press release after the close of business Thursday and also in a full-page advertisement in Friday’s edition of the Gazette.

The merger has been approved by boards at both banks and is expected to be complete by May 2017, pending an array of regulatory approvals. The transaction is valued at about $24.5 million.

The name of the bank will change to Rockland Trust once the merger is finalized.

Long headquartered in the historic brick building at Four Corners in downtown Edgartown, Edgartown National has three branch offices and about 40 employees. Its parent holding company, Island Bancorp Inc., has $194 million in assets.

Founded in 1907 in the Boston suburb of Rockland, Rockland Trust is wholly owned by Independent Bank Corp, with $7.5 billion in assets. The trust has expanded rapidly in recent years, completing the acquisition of Bank of Cape Cod just this week.

At a small gathering Friday morning that included members of the Island press, leaders at both Edgartown National and Rockland Trust said the merger is the result of several months of talks that came at the initiative of the smaller Edgartown bank.

“It was part of our strategic plan,” Edgartown National president and chief executive officer Fielding Moore told the Gazette. “We’re into the 21st century, risk management systems are required and we would need to be a bank twice our size to be able to have all the resources needed.”

“Banks are sold, not bought,” said Rockland president and chief executive officer Christopher Oddleifson, noting that the two community banks have much in common, beginning with a strong focus on customer service.

As part of the change, Mr. Moore, who indicated he is nearing retirement age, said he will step down, working as a consultant during a transition period.

All customer-facing staff including all branch employees will be retained, Mr. Oddleifson said, as will two senior vice presidents, Dee Lander and John Washbrook. Up to 20 employees who work in the main office will be transitioned out or offered different jobs within Rockland Trust. Every employee whose job is slated for elimination will be given priority for open positions in Rockland banks, including on the Cape, he said. Rockland employs more than 1,000 people.

Bank leaders talked about the many advantages the merger will bring, from increased lending capacity, mobile banking options and additional services for commercial and residential clients. (Edgartown National currently has a loan limit of $2.5 million, while Rockland’s loan limit is $100 million, Mr. Oddleifson said.) Rockland also plans to offer wealth management services through its own established wealth management division, a service Edgartown does not currently offer.

Mr. Oddleifson also spoke about Rockland’s rapid expansion. The trust has been on a buying spree since 2008 and now boasts more than 85 branches in eastern Massachusetts and Rhode Island. Between 2008 and 2015 it acquired Slades Ferry Bancorp, Benjamin Franklin Bank, Central Bank, Mayflower Bank and Peoples Federal Savings Bank. Rockland received final regulatory approval this week to acquire Bank of Cape Cod, a small community bank with assets of $260 million that operates four branches in Hyannis, Falmouth and Osterville. Plans call for Rockland Trust to close three out of the four of those branches but absorb most of the existing staff.

“We’re on a roll, “ Mr. Oddleifson said, adding: “I think the sort of Goldilocks size is where we are headed — between $15 and $20 billion. My sense is at anything bigger than that it become difficult to for senior managers to view the employees as human beings.”

The merger announcement opens another new chapter in the changing story of banking on the Vineyard. Twenty years ago the Vineyard had four banks, all independently owned. In 1994 the Martha’s Vineyard National Bank, founded in 1885, merged with Compass Bank. Compass later merged with Sovereign Bank, and in 2009 Sovereign was acquired by the global banking giant, Santander. Meanwhile, in 2007, the Martha’s Vineyard Cooperative Bank and Dukes County Savings Bank merged to become the Martha’s Vineyard Savings Bank. Last spring, Cape Cod Five Cents, an independent bank based in Orleans, opened a full-service branch in Vineyard Haven. Only the Edgartown National has remained unchanged — until now.

“It is a natural expansion and strengthening of our Cape Cod franchise,” Mr. Oddleifson said in the press release of the Vineyard transaction. “Edgartown National and Rockland Trust share the same values, and are committed to the communities they serve and the families that live in them,” he added.

“We are extremely pleased to join Rockland Trust, a growing bank with a terrific brand,” said Mr. Moore in the release.

The Edgartown bank has a rich legacy of community involvement. In 1955 on the occasion of its 50th anniversary, the Gazette dubbed the bank the Old Lady of the Four Corners, playing off the bank of England’s nickname The Old Lady of Threadneedle Street.

In 1967 the bank became the first to open a streetside teller window on Main street in Edgartown. In 1975 it made another first by offering free checking accounts. In 1987 the bank embarked on a $500,000 expansion, renovation and modernization of its main office in downtown Edgartown. “The heart of Edgartown will always be home for Edgartown National Bank,” the bank said in a large advertisement in the Gazette that year.

Members of the Vose family have long played a leading role at the bank, among them Donald Vose whose served as the bank’s president for 51 years. Mr. Vose died in 2008.

In a show of commitment to the Vineyard community, Rockland will donate $25,000 to the Island Housing Trust; a check passing ceremony was held Friday morning with IHT executive director Philippe Jordi.

In terms of total assets, Rockland is more than twice the size of Cape Cod Five and 10 times larger than Martha’s Vineyard Savings Bank. Santander is by far the largest Island bank, with $54.7 billion in deposits in the U.S. alone.

But based on Island deposits, Martha’s Vineyard is clear market leader, with 45.5 per cent market share at the end of June, according to the federal Federal Deposit Insurance Corporation. Edgartown National had a 14 per cent market share.

Comments (26)

Helen and Robert, Edgartown

We are not a bit surprised by this news. We were former customers for over twenty plus years. The bank was going way down hill then, Rockland Trust is a fine institute. WeI welcome the Rockland Trust Bank!

So this is the reason for the lack of investment in online banking. No App to deposit checks, no chip cards. Tellers who treated my daughter badly. We opened two accounts recently at MV Savings and they're so much better. They offer a better account for my daughter to use a debit card with. MV Savings has more branches. They have an App to deposit checks and they're an island bank. So why should I keep my money in Edgartown National when they're not an island bank anymore? I think Rockland Trust will discover how much the island likes local business. If I want an off-island account I might as well use an impersonal bank like Sovereign.

“It is a natural expansion and strengthening of our Cape Cod franchise,”....Martha's Vineyard is NOT Cape Cod, Rockland Trust, and many Islanders will hope you soon realize that fact. Another independent Vineyard business bites the dust, swallowed up by people from Away. So sad.

Mr. Vose once gave me a $100,000 loan on my personal signature. No forms. Just trust. Things are so different now. There is something to be said for a local bank. But, things change. Welcome Rockland Trust. This could be a very good.

Frank, A wink and nod banking is the very reason we had a banking crisis in the first place - it will be interesting to see what Rockland Trust unearths from years of this type of banking. I look forward and welcome Rockland Trust to our magnificent community.

This was something that was common place up until the 1960's to early 70's. Good Lord, transactions such as this took place all the time, they were certainly not the cause of the banking crisis. What planet are you people from?

I was in banking for close to 25 years before branching out to a more private sector job. With all due respect sir, I doubt that you just went into this bank, whenever that was, however many years ago, shook hands with this gentleman, said I need $100K, and he just handed it over to you. That is in direct violation of FDIC practices and regulations, and I'm not doubting the loan wasn't paid back, had there been an, as we say "issue" with funds and the bank needed to be reimbursed by the FDIC, etc. They would not have been reimbursed simply on a handshake, this guy you shook hands with would have been out of a job and investigated, and the institution would have some serious explaining to do to its shareholders and BOD.

Dick, I agree I am a retired investment banker with over 30 years experience personally have been involved with a few mergers in my earlier days..... The FDIC will look at "all transactions" and if there is any "handshaking deals" or "in house" questionable lending as we use to call them those folks who made those deals will sure have some explaining to do.

I have been on the "other side " of the bank business as a Business Consultant assisting clients finding & closing on appropriate Bank funding for over 25 yrs all across the country.. It's been my experience that Bankers, both big & small bend the rules where ever & whenever possible.. & when the Auditors came in & found some irregularites they gladly paid the fines as a cost of doing business.. For a highly regulated Industry, Banks go in & out out loan products all the time.. I have never worked w/ Rockland Trust so have no opinion.. but do know that they want the MVY deposits.. I hope they become friendly "local" lenders..

A bank that gave a personal loan backed by a signature would be sanctioned by regulators.
The banking crisis unearthed thousands of "no doc" loans. Subprime mortgages bankrupted many.
You may have paid back your loan but most did not.

Tom echoed my thoughts exactly. Another Island Institution lost. Lets hope our only remaining local bank, MV Savings can stay that way and not wander too far afield. When you hear about how customers are treated by the big mega banks, i.e. Wells Fargo, you realize how lucky we are to have a local bank, run by people who know us. Richard Toole

Oh dear me... I just spoke to the bank this morning while having my tea... They told me nothing would change... but I can say as a former Bank teller and loan officer with Shawmut Bank for 29 years things will change.... I will miss my "hello Betty" when I walk in the door. Well all good things come to an end.. I will also miss the annual Christmas Party every year....
My best to Fielding, John, Tom, Kathy and all the lovely people.

Well I look forward to Rockland Trust! They will be a great fit!! I am an existing customer and they are professional and nice to deal with. I left Edgartown National Bank 5 years ago when applying for a loan and was told on several occasions everything was "good to go" and in fact it was not. Unprofessional not Trust worthy and cost me time and money that could have been avoided.... not my Community Bank

I will miss the staff mostly. In fact, I miss them already. Fielding and John were always warm and inviting and the Holiday parties were outrageously funny, tipsy and always the last stop on my Christmas in Edgartown Stroll. I will raise my glass of cheer this year to all the staff, Fielding and John for so many years of service and support! Bless you all...

if you paid close attention to Mr Moore's reasoning he says the following:
We’re into the 21st century, risk management systems are required and we would need to be a bank twice our size to be able to have all the resources needed.
Let me help you interpret, government regulation is squeezing virtually every sector of our private economy specifically finance and there is no end in sight. These overreaches will slowly squeeze us until we become stagnant like Europe and then what? Can we go back like they are trying to do, likely not. If it doesn't bother you then keep the current politicians in and get ready to have your latte temperature regulated at Expresso Love or if it does make a statement at the polls!

You're absolutely right! The banking industry runs such a tight ship there's no reason for any regulation on them. They're renown for making sound decisions, not taking big risks, always keeping their documents straight and, of course, never threatening the stability of our economy with loan bundling schemes. Take off those shackles and let the banks be free!

Fielding Moore brought a very high level of professionalism and competence to this dowdy old institution. He has the unique ability to think outside the box to find a solution that works for both the customer and the bank.I hope the new people at Rockland Trust pay attention to him in the "Consulting Period", they can learn a lot from him.